CELESTICA INC (CLS) Stock Fundamental Analysis
USA - NYSE:CLS - CA15101Q2071 - Common Stock
337.77 USD
+11.32 (+3.47%)
337.77 USD
0 (0%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CLS is valued quite expensively, but it does show have an excellent growth rating. This makes CLS very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
CLS had positive earnings in each of the past 5 years.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
CLS has a better Return On Assets (8.63%) than 88.62% of its industry peers.
With an excellent Return On Equity value of 30.63%, CLS belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
CLS has a better Return On Invested Capital (19.07%) than 92.68% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is above the industry average of 9.37%.
The last Return On Invested Capital (19.07%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROIC | 19.07% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
Looking at the Profit Margin, with a value of 5.09%, CLS is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.56%, CLS is doing good in the industry, outperforming 67.48% of the companies in the same industry.
CLS's Operating Margin has improved in the last couple of years.
CLS has a worse Gross Margin (11.36%) than 77.24% of its industry peers.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CLS is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
CLS has an Altman-Z score of 7.34. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a better Altman-Z score (7.34) than 80.49% of its industry peers.
CLS has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as CLS would need 2.27 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.27, CLS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
CLS's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. CLS is outperformed by 69.92% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 7.34 |
ROIC/WACC2.27
WACC8.4%
2.3 Liquidity
CLS has a Current Ratio of 1.44. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.44, CLS is not doing good in the industry: 77.24% of the companies in the same industry are doing better.
CLS has a Quick Ratio of 1.44. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a worse Quick ratio (0.86) than 84.55% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 21.17%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 36.74% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 24.31% on average over the next years. This is a very strong growth
EPS Next Y41.57%
EPS Next 2Y30.03%
EPS Next 3Y27.45%
EPS Next 5Y36.74%
Revenue Next Year19.55%
Revenue Next 2Y19.46%
Revenue Next 3Y19.38%
Revenue Next 5Y24.31%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 63.97, CLS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CLS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.76, CLS is valued quite expensively.
A Price/Forward Earnings ratio of 50.97 indicates a quite expensive valuation of CLS.
CLS's Price/Forward Earnings is on the same level as the industry average.
CLS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.97 | ||
| Fwd PE | 50.97 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA is on the same level as the industry average.
CLS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.64 | ||
| EV/EBITDA | 44.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 27.45% in the coming years.
PEG (NY)1.54
PEG (5Y)1.33
EPS Next 2Y30.03%
EPS Next 3Y27.45%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
337.77
+11.32 (+3.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners75.85%
Inst Owner Change-0.91%
Ins Owners0.52%
Ins Owner Change-0.24%
Market Cap38.86B
Revenue(TTM)9.65B
Net Income(TTM)538.40M
Analysts81.25
Price Target192.1 (-43.13%)
Short Float %4.39%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.18%
Min EPS beat(2)6.65%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.8%
EPS beat(12)12
Avg EPS beat(12)9.35%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)2.5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.06%
Revenue beat(12)11
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)-0.7%
PT rev (3m)54.37%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)12.72%
EPS NY rev (1m)0%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)8.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.97 | ||
| Fwd PE | 50.97 | ||
| P/S | 3.67 | ||
| P/FCF | 100.64 | ||
| P/OCF | 70.79 | ||
| P/B | 22.1 | ||
| P/tB | 34.38 | ||
| EV/EBITDA | 44.48 |
EPS(TTM)5.28
EY1.56%
EPS(NY)6.63
Fwd EY1.96%
FCF(TTM)3.36
FCFY0.99%
OCF(TTM)4.77
OCFY1.41%
SpS92.03
BVpS15.28
TBVpS9.83
PEG (NY)1.54
PEG (5Y)1.33
Graham Number42.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROCE | 23.8% | ||
| ROIC | 19.07% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 28.15% | ||
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% | ||
| FCFM | 3.65% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 64.05% | ||
| Profit Quality | 71.71% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 7.34 |
F-Score7
WACC8.4%
ROIC/WACC2.27
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y41.57%
EPS Next 2Y30.03%
EPS Next 3Y27.45%
EPS Next 5Y36.74%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year19.55%
Revenue Next 2Y19.46%
Revenue Next 3Y19.38%
Revenue Next 5Y24.31%
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year58.36%
EBIT Next 3Y30.72%
EBIT Next 5Y34.86%
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 3 / 10 to CELESTICA INC (CLS). This can be considered as Overvalued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 41.57% in the next year.